§ 40-34-03 — Mortgages and mortgage bonds - Issuance over debt limit - Not general obligations - Vote required to issue - Conditions

North Dakota § 40-34-03

• Jurisdiction: North Dakota
• Title 40: Municipal Government
• Ch. 40-34: Sewage and Garbage Disposal

Text

obligations - Vote required to issue - Conditions.
Municipalities may issue mortgage bonds beyond the general limits of the bonded
indebtedness prescribed by law for the purpose of defraying the cost, or a part thereof, of a
sewage disposal plant and system or of a garbage disposal plant in accordance with the
provisions of section 40-34-02. The bonds shall not impose any general liability upon the issuing
municipality but shall be paid only out of the revenues received from the service charges as
provided in this chapter or from the sale of the property under foreclosure of the mortgage or
deed of trust. The bonds shall be sold for not less than ninety-eight percent of par and shall bear
interest at a rate or rates resulting in an average annual net interest cost of not more than
twelve percent per annum on those issues which are sold at private sale. There is no interest
rate ceiling on those issues sold at public sale or to the state of North Dakota or any of its
agencies or instrumentalities. No bonds shall be issued, however, except upon the affirmative
vote of three-fifths or more of the members of the governing body of the issuing municipality,
and the form, recitals, maturities, rate of interest, and whether the bonds shall be payable
annually or semiannually, shall be determined by the same vote. A municipality is authorized to
execute and deliver any mortgage or deed of trust contemplated under this chapter.